Concerns on Governor Hochul’s 800,000 Housing Compact Announcement

Today, Governor Hochul’s 2023 State of the State address announced a “Housing Compact” to create 800,000 housing units statewide over the next decade. While we applaud the Governor’s commitment to tackling New York’s growing housing crisis, her proposed luxury tax breaks and deregulation strategy is severely misguided.

 

We have seen in prior administrations that big housing unit goals drive forward misguided production at the expense of investing in the actual housing needs and solutions that could address our housing crisis. And indeed, the “Compact” the Governor announced in the State of the State dismisses increased investment in affordable housing. Perhaps most alarmingly, the Governor’s plan makes no reference to homelessness or evictions, at a time when courts are flooded with evictions, and homelessness is persistently high.

 

To truly tackle New York’s housing crisis, we need to address the needs of those who are most impacted by the crisis - that means doubling down on investment in affordable housing, and implementing new policies to house the homeless and prevent displacement, such as the Housing Assistance Voucher Program, Statewide Right to Counsel, Good Cause Eviction, and the Tenant Opportunity to Purchase Act. We cannot revert to broken policies like 421a - a $1.7 Billion annual tax giveaway to luxury developers who do not help to solve NYC’s housing crisis.  

 

ANHD agrees with the Governor that for far too long, too many municipalities – often affluent, privileged, or politically powerful communities – have been able to refuse housing development, engage in exclusionary zoning practices, and permit housing discrimination and/or disparities. It is time for all municipalities to do their fair share of addressing the housing crisis.

 

However, this type of policy must be focused on housing affordability and must come with requirements that municipalities work to provide housing for all, including our most vulnerable and marginalized New Yorkers. This cannot be a trojan horse for luxury development, developer profits, and declining building safety. We cannot once again fail to provide homes to the millions of NYers that are low-income, fixed-income seniors, migrants, formerly incarcerated, or in need of supportive housing. And any plan must include robust steps to protect tenants and homeowners from the challenges and pressures increased development can bring. We must guard against displacement, speculation, predatory equity, foreclosure, deed theft and gentrification.

 

ANHD and our members look forward to reviewing the Governor’s detailed policy and budget proposal and working with the Legislature on our efforts to address NY’s long-standing housing crisis.